Naira falls sharply across forex markets despite 32% increase in dollar supply
Naira to dollar exchange
Wednesday, 3rd August 2022: The exchange rate between the naira and the US dollar closed at N429.2/$1 at the Investors and Exporters (I&E) window, where forex is traded officially.
Naira closed on a positive note on Wednesday, with a 0.34% appreciation against the US dollar to close at N429.2/$1 compared to N430.67/$1 recorded in the previous trading session.
A total of $123.78 million was traded in the market on Wednesday, representing a 21.9% increase when compared to the $158.68 million traded on Tuesday.
In the same vein, the exchange rate at the black market appreciated on Wednesday to close at N665/$1 compared to N670/$1 recorded on Tuesday, representing a 0.75% currency appreciation against the US dollar.
Similarly, at the peer-to-peer market, naira rose to N616.66/$1 on Thursday morning from N652.5/$1 recorded on Wednesday, representing a rally of 5.5% compared to the previous day. This is following a shocking depreciation recorded in the previous week, when the naira fell to a record N705/$1 as a result of FX scarcity and panic buying.
Meanwhile, Nigeria’s external reserves recorded its eleventh consecutive decline on Tuesday, dropping by 0.1% to stand at $39.07 billion from $39.1 billion recorded as of Monday, 1st August 2022.
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The decline in the country’s external reserve could be attributed to the increased flow of FX in the official market in the past two days